Last checked October 2026 · by the PaySorted team
The basic rule
You can claim costs that are for your business. If something is used partly for personal reasons, you can only claim the business part. Gov.uk's own example: a £200 phone bill with £70 of business calls means you claim £70.
Money you take out for yourself ("drawings") isn't an expense.
What trades typically claim
| Cost | Can you claim? |
|---|---|
| Van running costs: fuel, insurance, servicing, repairs, road tax, breakdown cover | Yes (or use mileage rates instead) |
| Buying a van | Yes, through capital allowances (or as an expense on the cash basis) |
| Tools and equipment | Yes |
| Materials and parts for jobs | Yes |
| Parking and tolls for jobs | Yes |
| Phone and internet | Business share only |
| PPE: safety boots, hard hats, hi-vis | Yes |
| Overalls or branded workwear | Yes |
| Everyday clothes, even if you only wear them for work | No |
| Public liability and tool insurance | Yes |
| Training for skills you use in your trade | Yes |
| Trade body membership and subscriptions | Yes |
| Advertising, website, software (like PaySorted) | Yes |
| Subcontractors and staff wages | Yes |
| Bank charges and card fees | Yes |
| Parking fines and speeding tickets | No |
| Driving from home to the same yard or unit every day | No — that's commuting |
Your van: two ways to claim
You can either claim the actual costs (fuel, insurance, repairs and so on, plus capital allowances on the van itself), or use the simplified mileage rate — currently 55p a mile for the first 10,000 business miles. You can't do both for the same vehicle. See mileage allowance for tradespeople to work out which suits you.
Tools, equipment and vans usually qualify for the Annual Investment Allowance, which lets you deduct the full cost in the year you buy them (up to £1 million a year). Cars are treated differently.
Workwear: what counts
You can claim the cost of buying, cleaning and repairing:
- protective clothing, such as safety boots and hard hats
- clothing that protects your own clothes, such as overalls or aprons, used only for work
- uniforms and branded clothing that aren't everyday wear
You can't claim everyday clothes — jeans, plain trousers, ordinary shoes — even if you only wear them on site.
Working from home
If you do your quotes and paperwork at home, you can claim a share of household costs, or use HMRC's flat rates:
| Business hours at home per month | Flat rate per month |
|---|---|
| 25 to 50 | £10 |
| 51 to 100 | £18 |
| 101 or more | £26 |
The flat rate doesn't cover your phone or internet — claim the business share of those separately.
The £1,000 trading allowance
Instead of claiming expenses, you can take a flat £1,000 off your income. If you do, you can't claim any other expenses or capital allowances. For most trades with a van and tools, claiming actual expenses is worth far more.
Keep the receipts
Keep receipts and records for at least 5 years after the 31 January filing deadline. In PaySorted you snap a photo of each receipt on your phone, it reads the details, and your accountant can approve or re-categorise it from their free portal — no shoebox of receipts at the end of the year.
General information based on gov.uk guidance (checked October 2026), not tax advice. Your accountant can confirm what you can claim.
Common questions
Can I claim my work boots?
Yes. Protective clothing such as safety boots and hard hats is an allowable expense.
Can I claim my mobile phone?
Yes, the business share. If your phone is used for both work and personal calls, claim only the business part.
Can I claim travel to jobs?
Generally yes, if you work from home and travel to different customers' sites. Driving to the same fixed yard or unit every day counts as commuting and can't be claimed.
Can I claim both mileage and fuel?
No. For any one vehicle you either claim actual costs (including fuel) or the simplified mileage rate, not both.